POS Comparisons

Square vs Lightspeed Retail: Which POS Is Better? (2025)

By Mauricio Oct 26, 2025 4 min read

Choosing between Square and Lightspeed for your business? Both are popular multi-industry solutions, but they serve different needs. Square starts at Free (2.6% + 10¢ per transaction) and is All-in-one payment and business management platform, while Lightspeed starts at $89/month (Lean plan) and is Advanced cloud POS for retail and hospitality with strong eCommerce. This comprehensive comparison will help you decide which POS system is the right fit for your operation.

Quick Comparison: Square vs Lightspeed

FeatureSquareLightspeed
CategoryMulti-IndustryMulti-Industry
Starting PriceFree (2.6% + 10¢ per transaction)$89/month (Lean plan)
Rating4.7/54.4/5
Target BusinessSmall BusinessMid-Market
Pricing ModelFreemiumSubscription
Free TrialNoYes
Free VersionYesNo
Best ForSmall retail shops, food trucks, service businesses, and startupsGrowing retailers with complex inventory, multi-location businesses, omnichannel sellers

Square Overview

Square is a comprehensive payment and point-of-sale platform that helps businesses of all sizes accept payments, manage inventory, and grow their business. Known for its iconic card reader and user-friendly interface.

Square is offered by Block, Inc. (formerly Square, Inc.) (founded 2009) based in San Francisco, CA. The system focuses on Retail, Restaurants, Services, Appointments.

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Key Features:

  • Free POS app
  • Inventory management
  • Employee management
  • Customer directory
  • Analytics dashboard
  • Online ordering

Lightspeed Overview

Lightspeed is a cloud-based commerce platform providing POS, eCommerce, and payment solutions for retail and hospitality businesses. Known for advanced inventory management and omnichannel capabilities.

Lightspeed is offered by Lightspeed Commerce Inc. (founded 2005) based in Montreal, Canada. The system focuses on Retail, Restaurants, Golf courses, Hotels.

Key Features:

  • Advanced inventory
  • Multi-location support
  • Omnichannel selling
  • B2B capabilities
  • Purchase orders
  • Vendor management

Feature Comparison

Square Features:

  • Free POS app
  • Inventory management
  • Employee management
  • Customer directory
  • Analytics dashboard

Lightspeed Features:

  • Advanced inventory
  • Multi-location support
  • Omnichannel selling
  • B2B capabilities
  • Purchase orders

When comparing features, Square stands out with No monthly fees, while Lightspeed differentiates itself with Best-in-class inventory. Your choice should depend on which features align better with your specific business requirements.

Pricing Comparison

Pricing AspectSquareLightspeed
Starting PriceFree (2.6% + 10¢ per transaction)$89/month (Lean plan)
Pricing ModelFreemiumSubscription
Price RangeBudgetPremium
Free TrialNot availableAvailable
Free VersionYesNo

Square is more budget-friendly, making it a better choice for cost-conscious businesses. Consider the total cost of ownership including hardware, processing fees, and add-on modules when making your decision.

Pros and Cons

Square

Pros:

  • No monthly fees for basic plan
  • Easy setup and use
  • Excellent mobile app
  • Strong ecosystem of add-ons
  • Transparent pricing

Cons:

  • Transaction fees can add up
  • Limited customization
  • Account stability concerns for high-risk businesses

Lightspeed

Pros:

  • Powerful inventory management
  • Excellent for multi-location
  • Strong eCommerce integration
  • Good for complex catalogs
  • Built-in B2B features

Cons:

  • Higher price point
  • Learning curve
  • Some features require higher tiers
  • Contract requirements

Who Should Choose Square?

Square is ideal for Small retail shops, food trucks, service businesses, and startups. The system is particularly well-suited for Retail, Restaurants, Services, Appointments.

However, Square may not be the best fit for Large enterprises needing deep customization.

Who Should Choose Lightspeed?

Lightspeed is ideal for Growing retailers with complex inventory, multi-location businesses, omnichannel sellers. The system is particularly well-suited for Retail, Restaurants, Golf courses, Hotels.

However, Lightspeed may not be the best fit for Very small businesses or those on tight budgets.

Our Recommendation

Both Square and Lightspeed are solid POS solutions, but they excel in different areas. Choose Square if you’re Small retail shops, food trucks, service businesses, and startups. Choose Lightspeed if you’re Growing retailers with complex inventory, multi-location businesses, omnichannel sellers. Square has a higher user rating (4.7 vs 4.4). Also, choose Square if you want to start with a free version. We recommend trying demos or free trials of both systems before making your final decision.